12-step Amazon seller checklist

Small Business Guides

4 min read

Selling on Amazon makes a lot of sense. You can get up and running quickly, with a big potential market and low overheads. But it’s different to running your own retail operation. Here’s what you need to know.

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12-step Amazon seller checklist

Amazon has one of the biggest sales platforms in the US. Over two million sellers make a living by selling their products through Amazon’s website.

But you don’t need to be a big company with your own warehouse. Many sellers are small businesses or they are hobbyists with other jobs. If you’re ready to get started selling on Amazon, this checklist will help you.

Understand Amazon’s fee structure so you know your costs

A professional account costs $39.99 per month for selling an unlimited numbers of items. But you’ll have to add selling charges and other fees to that figure. Depending on what you sell, this can add up to 15 percent or more.

Create a new Amazon account in your business name

You may already have a personal Amazon account for buying items yourself. Set up a separate business one for selling. This will help you manage your finances, and it looks more professional.

Fill in the required Amazon account details, including billing information

Amazon requires company details and a credit card number. They need this information for charging monthly subscription fees, and also if you have a negative account balance.

Find a price that’s profitable and competitive

The right price will attract customers and leave you a healthy profit margin:

Check out the competition and see how much they're charging.

Use quality accounting software to work out what price is profitable for you.

Consider tools such as Profit Bandit, which uses bar codes. It will give you a profit estimate based on 15 factors, including postage rates and Amazon fees.

Amazon will send your products using its outer packaging. But the internal packaging can have your brand on it.

Start small – test the market with a few products

If you’re new to online selling, the learning curve can be steep. Start small so you can test the waters first. Get to grips with billing, payment handling and customer service.

Make the most of customized offers and special promotions

You’re not limited to basic sales. You can offer special promotions, gift-wrapping and unique sales items. These are great ways to help differentiate your products from your competitors.

Use Amazon's reporting to fine-tune your sales strategy

Amazon's Seller Central Area gives you reports on inventory, sales promotions and other useful information. Use this when forecasting sales and planning inventory. And don't forget seasonality – sales can more than triple in the holiday season, so be prepared for a sales surge.

Measure everything you can, especially when making changes

It's tempting to make changes from time to time – to stock, presentation or promotions. Make sure you measure the before and after sales figures, so you can see what works and what doesn't.

Using Amazon’s platform to sell on means you can tap into one of the world's largest markets. It can also reduce the amount of time you spend on fulfillment. With a bit of hard work, and the right attitude and strategy you can be successful at selling on Amazon.